Provident fund

Keywords: Mazars, Thailand, Provident fund, Payroll, COVID-19, Ministry of Finance, Employee, Employer

Updated: 10 June 2021

On 5 May 2020 and 8 January 2021, a notification of the Ministry of Finance was published in the Royal Gazette. The purpose of the notification is to mitigate the impact of the COVID-19 outbreak on both employers and employees.

• Employers and employees facing financial difficulties due to the COVID-19 outbreak can postpone making provident fund contributions until June 2021, while continuing to be enrolled in the provident fund.
• An employee can continue making contributions, but an employer can choose to postpone contributions or to make them as usual.
• In order for an employer to be able to postpone contributions, a general meeting of the fund must approve a resolution on this matter. However, a vote must be passed unanimously by the fund’s committees representing the employer and employees if a general meeting cannot be held.
• In order for contributions from a cash pool to be postponed, a general meeting of the fund must approve a resolution on this matter, or a vote must be passed unanimously by the fund’s committees representing the employers and the employees of each employer.
• An employer or the fund’s committees must submit the following documents to the provident fund registrar:
  • A statement from the employer certifying that it is having financial difficulties due to the COVID-19 outbreak. This must be signed off by the authorized person of the entity; and
  • The minutes of the general meeting or the fund’s committees reporting that the employer is having financial difficulties doe to the COVID-19 outbreak, and will postpone contributions until a time, but no later than June 2021.

Sources:

First announcement: Ministry of Finance Notification dated 29 April 2020

Second announcement: Ministry of Finance Notification dated 5 January 2021